Which Stores Offer Layaway and How the Process Works

Layaway serves as a payment method allowing consumers to secure an item by paying for it in installments over a period of time. The retailer retains possession of the merchandise until the total price is paid. This system enables individuals to budget for desired goods, particularly larger purchases, and can be beneficial for those without access to traditional credit options.

Retailers with Layaway Options

While traditional layaway has seen a decline in widespread availability, a number of retailers continue to offer this payment method. Many larger chains have transitioned towards “Buy Now, Pay Later” (BNPL) services, which operate differently by allowing immediate possession of the item. Despite this shift, some well-known stores still provide layaway, catering to consumers who prefer to pay off an item before taking it home.

Sears, for example, maintains a layaway program available both in-store and through its online platform, offering payment plans of 8 or 12 weeks. Kmart also provides layaway options in-store, online, and via their mobile application, with similar 8-week and 12-week plans. Baby Depot offers a 30-day layaway program for baby-related items, while Big Lots provides layaway for furniture merchandise at select locations.

Several apparel and general merchandise stores also feature layaway. Buckle offers a year-round layaway program with no service fees, giving customers up to 60 days to complete payments. Burlington provides a year-round layaway service for its wide range of products. Hallmark Gold Crown stores often offer seasonal layaway for their collectibles and gifts, with a 30-day payment period.

Specialty retailers also participate in layaway programs. GameStop offers layaway for gaming consoles and other higher-priced items, with a 30-day hold period. Certain Marshall’s locations may provide 30-day layaway options, with availability varying by store. The Army & Air Force Exchange Service (AAFES) allows in-store layaway for eligible purchases, waiving fees during holiday periods. Many independent or smaller furniture and jewelry stores also commonly offer layaway.

Some major retailers, such as Walmart and Target, have discontinued their traditional layaway programs. Instead, these companies have partnered with third-party BNPL providers like Affirm to offer installment payment options, where customers receive the item immediately after the initial payment. While layaway remains an option at various outlets, it is advisable to confirm current policies directly with the specific store.

Understanding Layaway Terms Before You Shop

Before initiating a layaway purchase, consumers should understand the associated terms and conditions. A down payment is required to secure the item, ranging from 10% to 20% of the total purchase price, or a set minimum dollar amount, whichever is greater. This initial payment reserves the merchandise, preventing its sale to another customer while the payment plan is active.

Many layaway programs include service fees, which are non-refundable charges. These fees range from $5 to $15, though some retailers, like Buckle or Big Lots for furniture, may not charge a service fee. Determine if this fee is applied per item or per entire layaway contract. Consumers should also inquire about cancellation fees, which are separate from service fees and are applied if the layaway agreement is not completed.

Payment schedules are a component of layaway agreements. Frequencies include weekly, bi-weekly, or monthly installments. Duration for a layaway plan can range from a 30-day period to longer terms of 8 weeks, 12 weeks, or even up to 6 months for higher-value merchandise like jewelry. The final payment deadline is a critical date, as failure to complete payments by then can lead to cancellation of the layaway.

Not all items are eligible for layaway. Retailers restrict certain categories, such as clearance items, perishable goods, or specific promotional products. Larger, higher-priced items like electronics, furniture, and certain apparel are accepted into layaway programs. Consumers should verify item eligibility with the store before attempting to place an item on layaway.

Cancellation policies are important to review. If a customer decides not to complete a layaway, the terms dictate what happens to the payments already made. While some retailers may offer a full refund of payments, others might issue store credit, or refund payments minus any non-refundable service fees and a cancellation or restocking fee. These fees cover the administrative and storage costs incurred by the retailer. Understanding these clauses before signing an agreement helps manage expectations regarding financial outcomes if the purchase is not finalized.

Initiating and Completing a Layaway Purchase

Starting a layaway purchase begins by selecting the desired merchandise in the store. Once the items are chosen, they should be taken to the designated layaway counter or customer service desk. A store associate will then verify the items’ eligibility for the layaway program and help establish the agreement. This process involves providing personal identification and signing a formal contract that outlines all terms, including the down payment amount, payment schedule, and cancellation policy.

After the initial down payment is made, regular payments are required according to the agreed-upon schedule. Payments can be made in-store, at the customer service desk, or through designated payment kiosks. Some retailers may also offer online payment portals, allowing customers to track their payment progress and make installments digitally. Keep all payment receipts as proof of transaction and to monitor the remaining balance.

The final step in completing a layaway purchase is making the last payment. Once the full purchase price, including any service fees, has been paid, the customer can take possession of the item. This involves returning to the customer service desk with identification and the completed layaway contract or payment records. The merchandise is then released to the customer.

Handling missed payments is important, as layaway agreements have clauses. If a payment is missed, retailers may provide a grace period, ranging from a few days to two weeks, during which the payment can still be made without penalty. However, repeated missed payments can lead to the cancellation of the layaway agreement by the retailer. In such cases, the items are returned to stock, and the customer may incur cancellation or restocking fees, with the remaining balance of payments either refunded or provided as store credit, as per the agreement.

To cancel a layaway agreement, customers need to visit the store where the layaway was initiated and speak with a customer service representative. The associate will process the cancellation based on the contract’s terms. Depending on the policy, a portion of the payments made may be retained by the retailer as a cancellation fee, while the rest is refunded. Review the agreement or inquire directly about the specific refund process and any applicable charges before proceeding with a cancellation.